Reckon Limited

RKN.AX

Software - Application · Technology

Price

A$0.42

-0.01 (-1.16%)

Market Cap

A$48.2M

Exchange

Australian Securities Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Exceptional

Stability

Good

Valuation

Strong

Dividends

Exceptional

Track this stock — start free trial

Share count falling — buybacks

−2.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 116.5M (2021) → 113.3M (2025)

Winston Score History

The full picture

Reckon Limited is an Australian software company that makes accounting and bookkeeping tools for small businesses, accountants, and individuals. Its main products include Reckon One, Reckon Accounts, and practice management software used by accounting firms across Australia and New Zealand. The company has operated in this space for decades and competes in the same market as Xero and MYOB.

Reckon earns money through software subscriptions and recurring license fees, which gives it a relatively predictable revenue stream. It operates almost entirely in Australia and New Zealand, making it a small, regionally focused business. Its long-standing relationships with accounting professionals and its established customer base provide some stickiness, but the company faces ongoing pressure from larger, better-funded competitors like Xero, which has significantly more scale and product investment. The key risk is continued customer migration away from legacy accounting software toward more modern cloud-based platforms.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-3.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+5.4% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

A$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

31.8%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

A$1M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Reckon Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

31.8%

Modest — 31.8% gross margin

Profit after running costs

Operating Margin

19.6%

Healthy — 19.6% operating margin

Return on the money invested

ROCE

0.9%

Weak — 0.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

+4.6%

Slow sales growth (+4.6% YoY)

Profit growth

EPS YoY

+41.1%

Earnings growing fast (+41.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

308%

Turns 308% of profit into real cash

Spare cash per sale

FCF Margin

37.7%

Converts sales into free cash efficiently (37.7%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

0.11

Conservative — low debt load (0.11)

Covers its interest

Interest Cover

0.68x

Dangerous — barely covers interest (0.7x)

Interest coverage below 1. Their profits don't cover the interest bill.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

6.4x

Attractive valuation — P/E 6.4

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

+0.9

GROWING

Earnings roughly flat

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend

Dividend Yield

5.88%

Healthy income — 5.88% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

+545.0%

Dividend growing fast (545.0% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial